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Climate change is emerging as a threat to the stability of the financial system. That is why G20 finance ministers and Central Bank governors asked the Financial Stability Board (FSB) to review how the financial sector can best take account of climate-related issues.

On 4 December 2015, Mark Carney — the Chair of the FSB and Governor of the Bank of England — announced the formation of the Task Force on Climate-related Financial Disclosures. It is the first international initiative to examine climate change in a financial stability context.

The Task Force will provide clear recommendations for preparers (corporations as well as financial sector participants) to disclose consistent information on the climate-related financial risks they face and the potential impact. The recommendations will be for voluntary disclosures in mainstream financial reports.

The Task Force issued its Phase 1 preliminary report on 1 April 2016 and is expected to deliver its final report to the FSB by the end of 2016.

Wim Bartels, KPMG’s Global Head of Sustainability Reporting & Assurance, is a member of the Task Force.